Advanta Bank is not willing for debt settlement - what to do?

After reading all the posts I can re. Advanta, here's my story...had an acct with them for several yrs and never missed a payment, int rate at 7.99. Then they closed all accounts and I continued making payments. Due to the economy and declining health, my biz closed. My last payment to them was Mar'10. Since then I have had no income to continue payments. Now I'm getting 5-6 calls a day asking for money. Some from INdia, some from other locales. I have explained my situation but have been met with criticism and rudeness. Now my latest statement shows an int rate of 29.99!!! on a closed account !!! I have decided to wait until I get something in writing for a LOW settlement or not even pay at all due to their tactics. I have told several of the callers that since they are recording me,I'm recording them and they promptly hang up! Since I am unemployed I guess I will continue playing phone games with them! Need some laughs anyway....anyway,it's good to know that I'm not alone dealing with these bast----!

Advanta is dead, done and gone. The FDIC will sell Advanta's debt to a junk debt buyer, but JDBs target solvent debtors with cash flow and they slough the other accounts to the next JDB ... who sells it to the next JDB. Eventually it comes to rest either with the annoying Buffalo-type JDB (if you think P&C or Sentry or Sage are calling a lot you ain't seen nuttin' yet) or to a local (to you) JDB with real teeth (typically lawyer-owned). But by then the chain of ownership is impossible to prove up and the case can be beaten because the account records can't satisfy the business records exception to the hearsay rule--at least not without a slew of witnesses that are at best extremely inconvenient to produce.

So why pay?

Nope-they haven't sued.

TNDebtor, Welcome to the party. Don't bother taking their calls. I bought a cordless phone with call block. All you hear is half of a ring then "poof" it cuts them off.

I just got a " WE ARE GOING TO CHARGE OFF YOUR ACCOUNT IN 20 DAYS" letter in the mail. Has anyone gotten one of these???? I don't get it? I have been getting phone calls from P&C. I thought when the account charges off - then it goes to P&C??

Can someone clear this up for me?

Marcello, this means that your original creditor is going to charge-off the account if you does not make the payments within 20 days. So, you need to make the payments, else your account will be charged off, and your credit will be hurt.

Charge-off is when the original creditor writes off the account as a loss, and hands it off to a collection agency. The original creditor can either give the collection authority to the collection agency, or may even sell off the account to the collection agency.

Now, can you tell me who mailed you this letter? As for Quote:

Marcello,
My Advanta account was transferred to P&C at 90-120 days late. P&C was to have the acct for a month, then it would be charged off by Advanta. I settled with P&C at 40% rather than have it charge off...

They are also threatening me with charge-off and reporting the principal charged off as income on a 1099. I don't want this tax liablilty to happen because this is a true business debt that I'm only half owner of (supposedly protected by being an LLC). But as we know you are treated as a business only if it is to Advanta's advantage. Has anyone had the charge off and then had the principal show up on a 1099. Other than spite I can see no advantage to them in doing that because we can't pay it now and would have NO incentive to pay it after that. Can anyone tell me what happens after the charge off if nothing is paid?

I got the letter from Advanta - It looks like any other mailing you would get from Advanta, the Blue Advanta logo. I also would like to know what happens after charge off ? Has anyone gotten a 1099 or even been served with any kind of court papers????

Anyonymous2 - in the event they do issue a 1099-C (cancellation of debt income), as per the tax code, if you're insolvent (liabilities exceed fair market value of assets) at the time of issue, CODI is not includable as income, therefore, there is no tax liability to worry about.

[COLOR=black][FONT=Verdana][COLOR=black]I keep hearing everyone talk about settlements. Has anyone settled for anything less than 20%? Has anyone gotten close to a 10% settlement? I have been trying and am not getting anywhere. My last payment was June 2009 I owe over 30m. RGS Financial is calling me telling me what my BANK SCORE is. I have never heard of a BANK SCORE, and he was not saying credit score, he said the banks have a score they keep too? I did not believe him no matter how hard he tried to convince me.[/COLOR]
[/FONT][/COLOR]

got me with the bank score. Never heard of it??
Question?
Is the best offer you got 20% after a year of non payment - have they ever tried to bring you to court??? What do they say when you offer them 10%???? If you don't have any assets I would hold out until you get what you want.

[COLOR=black]Marcello[/COLOR]
[COLOR=black] [/COLOR]
[COLOR=black]The reason why I bring up the 20% is because several months ago an Advanta Employee offered me the 20% settlement. He said I would receive the offer in the mail with in a couple of days. Two weeks later I received another call and when I told them I was still waiting for that offer in writing they person I was speaking to said their was no offer in the notes and that they would not settle for that. As far as assets, I am upside down on all of my properties and I owe over 50,000 in credit card bills. We have talked to a BK attorney and he told us to try to settle, if not we should consider BK to give us a fresh start. We prefer to settle but if not we will have to do a BK. I have asked them wouldn't it be better to receive something instead of nothing. They still are not offering me a settlement I can afford. [/COLOR]

Has anyone heard of anyone getting a 20% or better settlement ???What are they offering you after a year of non payment. I am only 5 months non payment and have not talked to anyone yet. I want it to charge off ( I know my credit is going to get hurt), but this is the only time in my life I have failed to pay a debit. I am paying all my other credit cards and loans, but I will not forget 37% rate jack. No way I am going to give into advanta or the fdic now. I am thinking like you, why not take something rather than nothing. Time will tell what happens?

well today I received a letter from Advanta with a "copy" of the potential court complaint that they can file against me! anyone else received these? calls have stopped though so not sure what's going on....

Got one months and months ago. Nobody has sued. Sleep tight.

I notice the same thing. Seems strange?? Has anyone else notice the that the phone calls have stopped??????????????????

[COLOR=black][FONT=Verdana]My called stopped for over 6 months and just started up again From RGS, a Mr. White is calling me. He was reading off of my credit report trying to feed me some bull that my "bank score" is over 800, ya right! I told him my credit score is in the toilet. I told him I had no money and wanted to settle for 5%, he told me no way and then what he quoted me was out of my ball park. Hey everyone I just want the economy to get better so that I can pay my bills but at the same time I want to be treated fair and not ripped off. I can not believe that ADVANTA is getting away with all of this and if the FDIC has taken them over they are continuing this nightmare. I will ask the same question I keep asking “Can anyone tell me what % they have negotiated with Advanta and if it less than 30%?[/FONT][/COLOR]

I have noticed the calls have dropped off. I get maybe one hang up every few days with an anonymous caller ID. I just started to get letters from Advanced Call Center Technologies about my Advanta account. They want me to sent payment directly to Advanta so I do not think they own the debt.This is the company that lost a harassment lawsuit for 1.5 million last week. I am 210 days late with an 8k balance interest was jacked form 2.99 to 34% last November.

I have done alot of searching and have not seen an Advanta Settlement offer of better than 40% after the FDIC took them over. Someone please correct me if I am wrong on this one.

Quote:

Regarding the bank score, he's probably talking about your risk rating score. Banks rate you based on your income, FICO, outstanding debt, etc. and score their predicted amount of risk if they were to issue you credit.

Yes, the calls have stopped I checked my CR and it say Advanta closed account June 2010

Wow, can't belive this tread has made it into the 43rd page.
Anyway,
Does it say close account with a charge off or just closed account? Would like to know what to look forward to. I am not giving this people more than 5 percent ; don't care how long it takes.

I just checked my credit for Advanta this is what it says "Unpaid balance reported as a loss by credit grantor" reported on june 2010. what does it say when it has been charged off?

Marcello - how long have you been in default? I totally agree 5% is tops otherwise, go $%^& themselves!

It says account closed June 2010 but does not say charged off. Advanta might have finally died after a long illness, I can only hope it has

Anyone else want to let Callie know how "edumacated" he/she sounds on the topic of lending.

Lones, lendering, u

I sure would like to get me one of those lones lendered to me!:)

i deleted the D-BAG.let's stay on topic here.

Quote:

Usually it says charged off but, "unpaid balance written off as a loss" could be interpreted as a charge off OR a settlement. Does it also show how far behind you were or the date of your last payment?

I am at 120 days...I think way to soon to try and settle at 5%. I am not getting any calls from anyone and nothing through the mail.

"reported as a loss by credit grantor" is that CRA's way of saying "charged off" ... when you "charge off" an account you move it from being an asset on the balance sheet to being a loss on the income and expense statement.

Quote:

beware all. you are all being mislead. advanta bank corp has a few cases files in my jurisdiciation as of June 2010. i have checked every week and found the cases in my county and i suggest you all do the same............

Hey Yikes...would you be able to share what your jurisdiction is?? I checked New York and got nada....maybe I am looking in the wrong place?????

[COLOR=black]Ok everyone, I am new to this area of not being able to pay my bills, how and where should I check to see if any cases are being filed in my area, (California)? Is it something that can be checked online? What happens when you just don't have the money, and what was once called an asset is not one anymore because you owe more on it then what it is worth? Can anyone explain what can happen and what the process is? I am willing to pay, I just do not have the income. Do they still take you to court if they have charged off your account?[/COLOR]

Quote:

Quote:

Quote:

Quote:

I Just check San Francisco and Sacramento Counties and found nothing on cases files by the FDIC and/or Advanta.

Checked New York City and found Nothing Also

Zero court records for Hillsborough County (aka Tampa). Nothing for neighboring Pasco and Pinellas Counties as well.

Last Court Dates I found were 2002 through 2004.

I am going on 90 days past due and just started getting calls now from a co. called "ACT" @ 866-677-9392 - said they were "calling on behalf of Advanta" when I asked if they were a CA. Googled them and came up with "Advanced Call Center Tech" in TN. Sounds like their in-house CA. Got a loooong ways to go before I will even waste my time talking settlement, in my case 0.00000000000001% lol!

Found two cases in central florida with advanta as plaintiff, filed 6/29/10 case title is contract/indebtedness one is with portfolio recovery associates as co plaintiff.

Quote:

Portfolio Recovery is well known for buying very junky debt and for tending to pursue those with hispanic-looking last names as defendants. I wonder how old those purchases are ... JDBs tend not to file suit immediately, they wait for some sign of recovery, so you may be seeing defaults from 3-4 years ago getting into court. Also, the statute of limitations for credit card debt in Florida doesn't have airtight appellate case law to define it. There are a couple of good cases like Fernandes and Credigy v. Allen that say 4 years, but they are trial-court level opinions.

Because Portfolio tends to be a second-placement (or later) purchaser, I would expect to find out at some point soon that a first-tier purchaser has picked up the bulk of the Advanta defaulted portfolio. I'm not sure Sage counts ... I don't know whether they are purchasers or not.

http://www.insidearm.com/go/arm-news/emcc-subsidiary-acquires-sage-systems-inc

Same with Sentry (they seem to be in the same neck of the woods [Washington State] as Sage--I wonder if they're somehow related).

I checked Orange County ... the last case newly brought was by Cavalry Portfolio (apparently they bought some Advanta accounts) in 2009.

There was a 2010 case, but it was a domestication of a judgment from a different state.

Just got a phone message from P&C and stated in the message that they have left many messages for me and have not been able to get a hold of me. At the end of the message he said if they don't here from me they will take legal action. Not going to talk to anyone over a phone and not going to settle for anything less than 10%. From reading and searching P&C have not settled for anything less than 40%. Do you think I am hurting myself by not talking to them? I have not paid them in 5 months